Client relations

How to motivate clients to send you more referrals

July 8, 2015 by David M. Ward

You can’t pay clients for sending you referrals. Not cash, anyway. But you can reward them nonetheless, and thus motivate them to send more referrals.

Reward them? Yes, by including them in your inner circle. The one you have established to recognize your best clients. You know, the clients who hire you most often, send you the most referrals, and otherwise help your practice grow.

Clients who qualify for your inner circle get a special invitation, a scroll or plaque, or maybeÂ a polo shirt with your firm’s name on it.

Nice. But you can do more.

You might invite inner circle clients to special “client dinners” with guest speakers (who pay for the dinner in return for being able to offer their services). You might invite them to your firm’s Christmas party, bar-b-que or beach party. Do you play golf? Perhaps the best of the best get to join your foursome.

If your inner circle clients own a business or professional practice, you feature them on your website and in your newsletter. You might take their employees out to lunch.

Inner circle clients get preferred access to you. You take their calls first, return their calls first, and respond to their letters first.

You might periodically enter the names of inner circle clients inÂ a drawing for a new iPad. Maybe one lucky winner gets their legal fees free that month.

You talk up your inner circle in your newsletter. You congratulate new inductees and prize winners. You promote the upcoming event. Your other clients, the ones who haven’t yet made the cut, hear about the inner circle and want in.

You might establish qualifications for joining your inner circle, or keep it at your discretion. You can invite all clients who pay their bills on time, or only invite clients who send at least one referral every six months.

Whatever you do, those who are in will want to stay in, and those who aren’t will want to be invited. Everyone will talk about your inner circle, everyone will want to be on your team, and everyone will do more to be included.

If you like this idea, your next step is an inner circle for professionals you send you referrals.Â It works the same way. Behavior that gets recognized and rewarded gets repeated.

Filed Under: Client loyalty, Client relations, Marketing legal services, Referral sources, Referrals Tagged With: client dinners, client inner circle

How am I doing?

July 7, 2015 by David M. Ward

Yesterday’s post was about seeking feedbackÂ from your clients, so you can discover problems that need fixing and also bring in some testimonials. A lawyer thought this was a hunky-dory idea and wanted to know if I had any sample forms he could use.

I don’t, but I sent him a few ideas he could use to design his own form. I thought I would share those with you.

Now, have you ever taken online surveys that seem to go on endlessly and ask questions nobody who thinks for a living can answer?

Yeah, don’t do that.

Make your survey as simple as possible.

There may be occasions when you want to ask yes/no or multiple choice questions, but for an all-purpose survey, I suggest you avoid the laundry list of options and ask a few open-ended questions.

Tailor it for your practice area and market, but here’s what you want to know:

What am I doing well?
What could I improve?
Do you have any suggestions (additional services, changes, etc)?
Would you recommend us to your friends? Why?
Additional comments:

Leave two or three blank lines after each question, so they know they’re supposed to write something.

Precede this with a sentence or two explaining that their feedback is important to you and you would appreciate their help in filling out this brief survey. Tell them what to do after they’ve filled it out, i.e., how to get it to you. Make this easy to do.

After the questions, say thank you, and mention how their responses help you do a better job for all of your clients.

And that’s about all you need.

Most won’t fill it out. That’s okay. You want to hear from clients who think something is wrong, you want to know if anyone hasÂ suggestions, and you want to hear from the clients who love you.

If you want to increase response, you might hold a monthly drawing. Everyone who fills out the form is entered and has a chance to win a $20 gift card.

Contact everyone who response and thank them again. Tell them again that you appreciate their taking the time to answer. Address their concerns, consider their suggestions, and when they give you praise, ask permission to use their comments as a testimonial.

So, what do you think? Did you like this post? Did I miss something? Do you have any suggestions?

No gift card, but if you have something you want to tell me, I’d love to hear it.

Filed Under: Client loyalty, Client relations, Law office management

Do your clients ever complain? Good!

July 6, 2015 by David M. Ward

Amazon delivered my new mechanical keyboard and mouse. Everything is good. I’m a happy camper.

I got an email from the company that fulfilled the order for the mouse. Did everything arrive in good shape? Any issues?

They provided me with a link where I could give feedback, report issues, and provide a review.

Did I click the link and tell them I was happy? Did I leave a review?

I did not.

Sorry, busy here. I’ve got a blog post to write.

The thing is, when everything is okay, your clients won’t tell you, either. Even when you ask them to and make it easy, like this email.

If something is wrong, on the other hand, you’re going to hear about it, right? You’ll get an earful from the client and a bad review on Yelp.

Not necessarily.

Unless things are really bad, most dissatisfied clients quietly go away, never to hire you again. They don’t complain, they just leave.

But you want them to complain. If they are dissatisfied with your work, if they think you offended them, you want to know about it, so you can fix the problem and make amends.

You need to ask for their feedback, not once, but continually.

Through email, online surveys, and especially when you speak to them.

Encourage them to be open with you about everything. Let them know you won’t be hurt if they aren’t happy about something, you’ll be glad they told you so you can do something about it.

Tell them that they are doing you (and all of your other clients) a favor by being honest with you, because they are.

Ask your clients for feedback, and ask often. Put a link in every email. Give them a form every time they come into the office. Bring up the subject when you have them on the phone.

Let your clients be your “quality assurance” department. You’ll find out about problems so you can fix them, and. . . you’ll also get more testimonials.

Filed Under: Client loyalty, Client relations, Law office management

Would you hire you?

July 3, 2015 by David M. Ward

I’ve got a question for you. Something for you to ponder over this weekend. Don’t just answer and move on, give this a bit of thought because it is important.

The question is, “Would you hire you?” Knowing what you know about your skills and experience and what you really bring to the table, if you needed a lawyer who does what you do, would you hire you?

If you would, great. Write down all of the reasons you would do that. In fact, keep a running list of reasons because you can use these in your marketing. Make sure you do this for each of your practice areas and/or services.

If you would not hire you, why not? If you have doubts about some things, what are they?

Be honest. Nobody else is listening.

What could do you better? What skills do you need to improve or acquire? Where are you “just okay,” when you know you should be great?

Since you might not be able to see these things, or admit to them, you might ask others to help you with this. Ask you clients. Do exit surveys. Do anonymous online surveys and let them tell you what you need to improve. Ask your staff, your partners, and your spouse.

Can you see how this information would be helpful?

Good. Because when you’re done with this question, I have another one for you to answer:

Would you buy your practice?

If it was for sale, would you plunk down the cash to buy it? Would it be a good investment? Or would you just be buyingÂ yourself a job, and underpaid one at that?

I don’t have the answers. Just the questions. Because that’s my job, and I’m good at it.

Filed Under: Career satisfaction, Client relations, Increase your income, Law office management, success

It’s all about keeping your clients happy

June 30, 2015 by David M. Ward

Nobody would argue that keeping your clients happy isn’t vital. Clearly, it is the genesis for repeat business, referrals, and getting paid on time. But is keeping your clients happy paramount?

No. Keeping your employees happy is more important.

If you don’t keep your employees happy, you can forget about keeping your clients happy.

By the same logic, keeping yourself happy is more important than keeping clients happy. If you’re not happy, you won’t be much good to anyone else.

In response to yesterday’s post about not negotiating fees, a personal injury lawyer wrote and saidÂ he disagreed. “It’s all about keeping your clients happy, so they will return and refer,” he said.

Yes, smother your clients with love and attention. Remind them often about how much you appreciate them and want to help them. But just as a parent doesn’t need to buy his kid a pair of $300 sneakers when he asks for them, lawyers don’t need to buy our clients’ love by agreeing to cut our fees.

I showed my clients I cared about them by takingÂ cases with questionable liability and negligible damages. I showed them that I was on their side and would fight for them when they asked for my help, even whenÂ I thought we would probably lose the case, and even if we won, I knew I wouldn’t earn much of a fee.

I also waivedÂ my fee on many cases, or cut itÂ voluntarily. When it’s your idea, you are a hero. When the client asks (or insists), you’re just a commodity.

So be generous with your clients. But do it because you choose to do it, not because you might lose them if you don’t.

The writer also said he doesn’t think his other clients know when he cuts his fee for a client who asks him to.

Question: What happens when client A (who got a discount) refers client B? Does he offer the same discount to client B? If he doesn’t, what happens when the new clientÂ finds out that you charged his friend less?

And what happens when client A returns with another case? Does he get the discount on that, too?

CuttingÂ fees is a slippery slope.Â I know. I once had an office in a market where all of the PI lawyers ranÂ dueling ads promisingÂ increasingly lower contingency fees. You charge one-third, the next guy says he’ll take the case for 25%, three more lawyers advertise 20%.

When it got down into the 8-10% range, I’d had enough and closed that office.

With low overhead and high volume, I was still making aÂ profit. But I wasn’t happy.

For more, see The Attorney Marketing Formula and Getting the Check

Filed Under: Attorneys fees, Client loyalty, Client relations, Fees and Billing, Law office management, Marketing legal services

Should I ever cut my fees for a client who wants to haggle?

June 29, 2015 by David M. Ward

A Mr. Richard Feder of Ft. Lee, New Jersey, writes. . .

Sorry, I’m stuck in the 70’s.

A lawyer emailed and says he has a client who is questioning his fees and wants him to reduce it. “Should I cut my fees,” he asks.Â He’s afraid it would open the door for her to ask again and again. Not to mention what might happen if word gets out and other clients and prospects get wind of it.

The short answer to this question is “no”. Don’t do it.

Don’t negotiate fees or cut them for an individual client. Doing so assails the integrity of your fee structure. “You will? Oh, so that means all of the other times I’ve paid $X, you were overcharging me?”

Explain that even if you were willing to lower your fee, this would be unfair to all of your other clients who pay your regular rates. It would also be unfair to you, since you would be working for less than the fair market value of your services.

If she owns a business, ask what she would do if her clients or customers asked her to cut her fees or prices. If she has a job and her employer asked her to work for less pay, would she do it?

Ask her to explain why she is asking you to cut your fee. If she says you charge more than other attorneys charge, explain to her how you are different or how you are worth more, e.g., you have more experience, you have a better track record, you get the work done faster, you offer other benefits they don’t offer, and so on.

Show her that you charge more becauseÂ you are worth more.

If she says she just doesn’t want to pay it, that’s a different story and it’s easy to handle.

Let’s say she’s asking you to cut your fee from $7500 to $5500. After you explain why you cannot do this, tell her that you would be happy to provide her with $5500 worth of work if that is more in line with her budget. At her option, she can get the rest of the work done later.

Or, you might suggest different terms, where the work is done in phases, over an extended period of time.

If this is not acceptable, graciously offer to provide referrals to other attorneys you know who might help her at a fee that is in line with her needs andÂ herÂ budget.

Be strong. Don’t negotiate your fees. If a client leaves because of it, they weren’t worth having as a client.

For more, see The Attorney Marketing Formula and Getting the Check

Filed Under: Attorneys fees, Client relations, Fees and Billing

Do you make clients feel welcome?

May 27, 2015 by David M. Ward

Most people have never hired an attorney before. When new clients or prospective clients come to your office, they are nervous. Do you make clients feel welcome? Do you make them feel comfortable?

If you do, you take a big step towards ensuring that they like you, hire you, and recommend you.

First impressions count.

What are you doing in your waiting room to make clients comfortable? What do they experience when they talk to the receptionist? What impression do they get when they meet you for the first time?

Take inventory of what it’s like to come to your office for a first appointment, or any appointment.

Here are some suggestions:

Reception Desk

Greet client with a smile
Ask about traffic, parking, weather
Make it easy to fill out paperwork: sticky notes, highlights, clipboard, pen
Tell them how long it will be before attorney will see them
Offer coffee, water

Waiting Room

Something to read , TV–take their mind off their situation
Kids: coloring books, toys
Plants, pleasant decor, comfortable seating

You/Your Office

You come to get them
Business attire, well groomed
Handshake, smile, eye contract
Greet by name, ask how they are doing
Comfortable small talk
Offer coffee, water, refills
Explain what will happen at the appointment
Free consultation: explain no cost or obligation
Ask open-endÂ questions, take notes, ask”confirming” questions
100% attention: no calls, texts, emails; continue making eye contact
Summarize plan of action before they leave
Walk them back to reception room
Consider: brief office tour, introduce staff

Make clients feel welcome and appreciated. Help them relax. Show them that you are a professional and that you will take good care of them. Show them that they made the right choice when they chose you.

Filed Under: Client relations, Law office management

The lifetime value of a client

April 23, 2015 by David M. Ward

Most lawyers invest more time and money in acquiring new clients than in retaining existing ones. And yet the cost of retaining clients is a fraction of the cost of acquiring new ones.

If you want your clients to keep coming back to you, the first thing you need to do is to realize that it’s worth making them happy.

And it is.

Your average client is worth so much more to you than what they pay you for their initial engagement. Their value is an average of all of the fees they are likely to pay you in the future, over their lifetime as a client.

Some clients won’t come back because they don’t need you again, but others will hire you frequently. Some will have small cases, others will have big ones.

And every client can send you referrals, which also count towards their average lifetime value.

Once you understand that the client who pays you $5,000 this year might contribute an average of $150,000 to your bottom line over their lifetime, you will appreciate why it is worth investing in them.

If you only look at the $5,000, you might resist the idea of spending $50 per client per month to stay in touch with clients via a newsletter, birthday cards, and small gifts. If you look at their lifetime value, however, you might look for ways to invest even more.

Consider the cost of acquiring a new client. Take everything you spent last year on anything that could be considered marketing (and don’t forget the value of your time) and divide that number by the number of new clients you signed up.

If you spent $2,000 to bring in one new client who pays you $150,000 over their lifetime, you did well. So I’m not saying you shouldn’t try to bring in new clients. Just that it’s more profitable to keep your existing clients coming back.

It’s also much easier to get existing and former clients to hire you. They already know you and trust you. You don’t have to find them or convince them that you can do the job. If they need your services and you kept them happy in the past, you don’t have to do much to get them to hire you again.

The most effective marketing strategy for any professional is to make an ongoing effort to keep their clients happy. Find out what they want and give it to them. Encourage them to tell you how you are doing and what you could improve. Find out what they expect of you and do everything you can to give them more.

Because over their lifetime, they are worth a fortune to you.

Filed Under: Client loyalty, Client relations, Increase your income, Leverage, Referrals Tagged With: client retention, lifetime value

Charging clients more because you are worth more

April 16, 2015 by David M. Ward

I heard from an attorney who says he gets tongue tied speaking with prospective clients about fees and tends to lean towards charging less. Even then, he’s afraid they will think he charges too much.

I told him to write out what he would say to them if he was confident about his fees–why he charges what he does, the benefits he offers, why he’s worth more than other lawyers, and so on.

Write it, read it, contemplate it. And then post it, or a version thereof, on your website so that prospective clients will be able to read it before they ever speak to you. They will understand that youÂ charge a bit more but you’re worth it.

You might want to try this, too. Write down all that you do for your clients, from soup to nuts. Write down all the little things you do to make their experience with you as comfortable as possible. Write down all of the things you do to help them achieve a successful outcome.

You don’t have to post all of this on your site but you do need to see the value in what you do. You need to understand why you are worth more.

But what if you don’t believe you are worth more?

Then you have work to do. Because if you want to charge higher fees than you currently charge, if you want to charge more than other lawyers charge, you have to believe that you are worth more.

If you believe it, you won’t have any trouble talking about fees. You will do it confidently. It is a selling point for you. You want clients to know that when they hire you they get incredible value for what they pay.

Charging clients more comes down to believing you are worth more.

But keep in mind that when it comes to something as abstract as fees for professional services, value is relative and perception is everything. You’re worth what clients are willing to pay and you’re willing to accept.

No more and no less.

Filed Under: Attorneys fees, Client relations, Closing the sale, Fees and Billing, Handling objections, Online Marketing, Personal development